Illinois Tollway floats rate hike to fund projects

(Crain's) — State officials want to raise toll rates to fund a $12-billion, multiyear project to fix and expand expressways around Chicago.

The Illinois Toll Highway Authority on Thursday proposed increasing rates by 35 cents to 90 cents for I-Pass users, nearly doubling the 40-cent toll they’ve been paying since the 1980s. Drivers using the I-Pass system would pay an average of $1.18 per trip, up from the current average of 63 cents. Drivers paying cash would continue to pay double the I-Pass rate, which ranges from 15 cents to $1.

The money would go toward a range of projects, including rebuilding the aging Jane Addams Tollway, 20 miles of the Tri-State Tollway, adding an interchange at I-294 and I-57, and turning the Elgin-O’Hare expressway into a tollway providing western access to O’Hare Airport.

The agency wants the higher rates to take effect Jan. 1.

There's no commercial vehicle increase proposed, since that rate hike was approved in 2008 to start in 2015.

Bonds would also be issued to help pay for the project, called "Move Illinois: The Illinois Tollway Driving the Future," a plan to that would begin in 2012 and is schedule to conclude in 2026. The tollway says the project would create 120,000 permanent jobs and add $21 billion to the state's economy.

Public hearings have been scheduled for next month to discuss the proposal.

While projects such as rebuilding the Jane Addams are long overdue, raising rates has been considered political kryptonite by state lawmakers, who have voiced strong opposition to the idea. And, the tollway authority has been plagued with credibility issues, most notably former Gov. Rod Blagojevich's attempt to get contractors to donate to his campaign in exchange for projects. Last month Mr. Blagojevich was convicted on federal corruption and fraud charges.

In 52 years, the agency has adjusted tolls just four times, raising them three times and dropping them once. The tollway says even with this increase, Illinois would still rank among the states with the lowest tolls — placing 29th out of 41 states.

"A 21st-century transportation system can't be paid for in 1983 dollars," Illinois Tollway Executive Director Kristi Lafleur said. "No one is going to step up — not Washington, D.C., nor anyone else — to help us pay for these infrastructure improvements that are needed to keep our competitive advantage."

The higher rates would help pay for improvements such as widening part of the Jane Addams Memorial Tollway, rebuilding more than 20 miles of Interstates 294 and 94 and other repairs. Maintenance is under way on the Jane Addams, but it has not been rebuilt since it opened in 1958.

The agency is wrapping up its 2005-16 project, which it says is 85% complete and within budget. That project was funded by selling bonds and raising tolls on commercial vehicles. It also called for charging drivers who pay tolls with cash double the rate of I-Pass users.

Doug Whitley, president and CEO of the Illinois Chamber of Commerce, said points out that "from time to time additional funds must be raised to support capital investment" in the toll roads.

"The Illinois Toll Highway Authority in recent times has shown itself to be a good steward of user fees collected and has executed projects ahead of schedule and under budget," said Mr. Whitley in a statement. "The Illinois Chamber of Commerce infrastructure council is pleased to see the authority move forward a plan that will cut congestion and create thousands of badly needed high-paying jobs through prudent infrastructure investment."